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f'-'" ~,~\ ,,-, \, ~.~ ~ ARDEN HILLS CITY COUNCIL - SEPTEMBER 11, 2000 4 Councilmember Grant stated that he had been hoping to keep the levy increase down to near 3%. However, this was prior to consideration of the items discussed by Mr. Post. . Councilmember Aplikowski asked how the recent proposal by Governor Ventura will impact the City budget. Mr. Post stated that one of the impacts of Governor Ventura's proposal was that if the City is in a TIF district and deriving TIF revenue, approximately one-half of the nF revenues are generated from the School District's tax rate. Ifthe School tax rates are cut in half, this will leave many cities and nF districts throughout the State in need of support for their bond debt servIce. Mayor Probst presumed that while Governor Ventura's proposal is being worked out this issue will be paid attention to. With regard to the proposed year-end surplus, Councilmember Rem asked if the City has ever ended a year in a deficit situation in the last 10 years. Mr. Post responded affirmatively, Councilmember Rem asked how often this occurs. Mr. Post stated that the surpluses that the City generates are typically related to the performance in the Building Permit revenues, which are somewhat unpredictable. Councilmember Larson noted that the City Council had previously approved approxirnately $40,000 for work to connect the new water line on the street behind Mounds View High School. He requested confirmation that this money will come from a fund other than the General Fund. Mr, Post stated that the cost for this project will be paid from the Water Utility Fund. Therefore, it will not impact fhe tax levy. . Councilmember Grant requested confirmation fhat the levy increase amount set by the City could later be reduced but not increased, Mr. Post stated fhat the importance of setting the preliminary levy and Trufh in Taxation public hearing dates this evening was that this was fhe basic input that goes into the Trufh in Taxation process. Therefore, whatever levy is approved by fhe City Council fhis evening will be reflected in the statement sent to the residents of Arden Hills wifh respect to changes for 2001. Mayor Probst stated that he had met with City Staff prior to this meeting and discussed the fact that there were a number of issues for future planning considerations related to the Arsenal property and fhe 1-35W Corridor Coalition. He indicated fhat an option may be for the City to pursue outside funding sources to help deal with some of these extra costs. Mayor Probst indicated that one issue with fhe tax levy was that every one percent of increase only nets the City approximately $20,000. Therefore, in order for fhe City to fund the new Community Development Director position in 2001, there would have to be a 2.5% increase for just this one item and he was not certain that the City Council was prepared to do this. Councilmember Larson stated that if there was a possibility of extending the life of the County Road E light poles for an additional two years, and if it may be possible to fund the Community Development Director position through a grant or ofher outside source of revenue, fhen the .